SPRINGFIELD -- Babson Capital Management LLC ("Babson Capital"), an investment management firm based in Springfield and Boston, Mass., and Charlotte, N.C., today announced that Robert Little, CFA, CRI, will assume leadership of the firm's Real Estate Finance Group (REFG) at the end of the year.

Mr. Little, 42, who has been with REFG since 1987, will replace the retiring Kenneth Hargreaves, who has led REFG since 1991 and who has been with the firm's real estate business since 1972. The REFG portfolio currently exceeds $22 billion in assets managed and serviced (as of year-end 2007) with annual investment activity of about $4 billion.

"In Rob's 21 years with the firm, he has demonstrated outstanding ability as a real estate investor, business builder and leader," said Roger Crandall, Chairman and Chief Executive Officer of Babson Capital. "His skills and experience ensure our clients that REFG will continue to seek quality investment opportunities that provide value over the long term. Our emphasis remains on building relationships based on integrity, responsiveness and transparency."

"Ken has been an integral part of Babson Capital for 36 years and an outstanding leader of our Real Estate Finance Group, combining impressive skills with grace, wit and humility," added Mr. Crandall. "He also has worked closely with Rob for two decades, so we expect an exceptionally smooth transition."

Mr. Little is currently responsible for the origination, structuring and distribution of high-yield commercial mortgage products, including bridge lending, mezzanine and preferred equity investments. He also oversees the firm's role as manager of Babson Mezzanine Realty Investors LP and as co- manager for two previous mezzanine funds, as well as high-yield real estate investing for MassMutual's general account and third-party clients. His previous experience includes the development and oversight of REFG's capital markets area with responsibility for all commercial mortgage-backed securities, real estate investment trusts and structured commercial mortgage transactions, and oversight of the Midwest and Northeast regional offices in Chicago and Springfield, Mass., respectively.

Mr. Little is a member of the Mortgage Bankers Association, the Hartford Society of Financial Analysts, and serves on the boards of Wrightwood Capital LLC and the Springfield YMCA. Rob received a B.A. in Economics from Bates College in Lewiston, Maine, and was awarded the Chartered Financial Analyst (CFA) designation, and the Chartered Realty Investor (CRI) designation.

Assuming Mr. Little's responsibilities will be Clayton "Chip" Andrews. Mr. Andrews joined Babson Capital in March, and has 20 years experience in commercial real estate and related capital markets, including both debt and equity transactions. For the past 14 years, he has been Chief Operating Officer and Partner at Cheslock, Bakker and Associates, an opportunistic private real estate merchant bank in Stamford, Conn.

About Babson Capital Management

Babson Capital Management LLC and its subsidiaries manage more than $108 billion as of March 31, 2008 for sophisticated investors in the U.S. and abroad. The firm offers a wide range of absolute return, co-investing, financing and customized mandates utilizing equity, fixed-income and derivative instruments. Based in Boston and Springfield, Mass., and Charlotte, N.C., the firm has six additional offices in the U.S. with subsidiaries in London and Tokyo. Babson Capital is a member of the MassMutual Financial Group and is on the web at www.BabsonCapital.com.

About the Real Estate Finance Group

REFG is a full-service real estate capital provider with more than $22 billion in total assets managed and serviced and a staff of more than 100 associates. REFG maintains five regional offices in Chicago, Dallas, Newport Beach, Calif., Springfield, Mass., and Washington, D.C. Debt products cover the full spectrum of commercial mortgage origination, including permanent mortgages, mezzanine and high-yield products, affordable housing, fixed and floating-rate debt, portfolio lending, acquisition financing, bridge loans, forward commitments, Canadian financing, construction-permanent lending, and public market REIT and CMBS debt investments. Babson Capital's REFG is the sole and exclusive real estate debt advisor for Massachusetts Mutual Life Insurance Company ("MassMutual"). REFG also manages real estate debt assets and funds for institutional clients worldwide.